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As of December 1, 2021, X Company had produced and sold 61,000 units of its only product. The following is the company's December 1 Income
As of December 1, 2021, X Company had produced and sold 61,000 units of its only product. The following is the company's December 1 Income Statement: Per-Unit Sales Cost of goods sold Gross profit Selling & administrative costs Profit Total $816,790 $13.39 567,300 9.30 249,490 4.09 140,300 $109,190 2.30 $1.79 Analysis of cost of goods sold reveals that $128,100 of it was fixed; a similar analysis of selling & administrative costs reveals that $79,300 of it was variable. On December 2, a company offered to buy 4,020 units for $12.11 each. Because the special order product was slightly different than the regular product, direct material costs were expected to decrease by $0.10 per unit, and some special equipment would have to be rented for a total of $16,000. 4. What would profit have been on the special order? Submit Answer Tries 0/3 5. If X Company had accepted the special order, it would have had to lower the selling price of its regular product to $12.82 per unit to prevent the loss of regular customers. This price reduction would have decreased company profits by Submit Answer Tries 0/3
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